The subject matter of the present invention relates to an invoice processing approval and storage system adapted to be stored in a memory of a server, operatively connected to a traditional accounts payable system, and responsive to requests received from a subcontractor or supplier via the internet for receiving invoice information, transferring data from the invoice into corresponding fields of the traditional accounts payable system, automatically reminding managers to approve or disapprove payment of the invoice, automatically indicating that the invoice was approved or disapproved or paid, and storing the invoice into an image archival database.
In some countries where an electronic data interface is not an acceptable means for exchanging information between a first business and a second business during the processing of payables, hardcopy information (such as a hardcopy invoice) is generated by a first business (such as a subcontractor or a supplier) and that hardcopy information is subsequently received by a second business (such as a contractor or buyer). When the hardcopy information is received, the second business must reconvert the data appearing on the hardcopy information into electronic digital information for storage into a traditional accounts payable system database so that the electronic digital information may subsequently undergo further processing, such as review/approval, matching with a purchase order, and sending payment from the contractor or buyer to the subcontractor or supplier.
In the absence of an electronic data interface front end system, when a hardcopy invoice is received, manual work is required to enter a plurality of data from the hardcopy invoice into a database, and this manual work is repeated several times in various organizations thereby generating one or more typographical errors which are stored along with other entered data in the database. In addition, after the plurality of data has been entered into the database, it is necessary to manually track the hardcopy invoices throughout the entire approval process. Furthermore, certain necessary information in the database must be updated periodically (approved, not approved, paid, or not paid) in order to complete the processing of the hardcopy invoices. Finally, the hardcopy invoices must be stored for future reference. In the absence of an electronic data interface front-end system, the user must implement the following process: (1) scan-in a plurality of images associated with a supplier invoice, (2) send the plurality of images via a data network from one location to another, (3) print in hardcopy form the received plurality of images associated with the supplier invoice (hereinafter, ‘hardcopy supplier invoice’), and, since the plurality of images on the hardcopy supplier invoice include a plurality of data, (4) manually key the plurality of data into a traditional accounts payable system, such as the Common Alternative Accounts Payable System (CAAPS) used by the International Business Machines Corporation. Meanwhile, the hardcopy supplier invoice is circulated in its country of origin to obtain the necessary approvals and the hardcopy supplier invoice is then filed away for future reference. The disadvantages associated with the aforementioned process, which is implemented by the user in the absence of an electronic data interface front-end system, are: (1) the high costs incurred for scanning-in the plurality of images associated with the supplier invoice, (2) the manual tracking and manual updating of information into the traditional accounts payable system is not avoided, (3) the same problems associated with manually updating information and manually reviewing and approving of supplier invoices, such as typographical errors and documents lost in transit and manually tracking and obtaining approvals, are not avoided; (4) increased data network load requirement, and (5) security protection of information on the hardcopy supplier invoices can be compromised.
Accordingly, a front-end electronic data interface is needed (otherwise known as an Invoice Processing Approval and Storage System or IPASS System), which is adapted to interface between the aforementioned traditional accounts payable system and the subcontractor or supplier that generates the invoice, for automatically updating the traditional accounts payable system when a fax or scan of a subcontractor or supplier invoice is received without the need for manually keying of invoice information, automatically seeking any necessary approvals for payment of the invoice, and automatically recording a payment of the invoice.